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WHEREAS, in lieu of the EPA's demand for a civil penalty of$135,000,the EPA is <br /> willing to settle the foregoing violations for a civil penalty of$33,500, with the remaining <br /> $101,500 to be used by the County and WMH to complete a Supplemental Environmental <br /> Project("SEP")to cost at least$184,400 intended to provide significant environmental or public <br /> health protection and improvements at the Old Closed Kailua-Kona Landfill, as set forth in the <br /> proposed CAFO set forth as Attachment"A"; and <br /> WHEREAS,the SEP will consist of (1) investigation of landfill subsurface conditions to <br /> find hotspots that probably mark subsurface fires by infrared imagery, mapping thermal and <br /> topographic changes using shallow temperature probes,photoionization detectors and methane <br /> meters; and(2) a Fire Suppression Demonstration Project using fire retardant Class-A fire <br /> suppression foam to suppress an existing subsurface fire at the landfill. This will involve <br /> excavation of burning material 10 feet deep in about a 65-foot square demonstration area, <br /> suppression of burning material with foam on an adjacent crushed rock suppression deck before <br /> replacement, and trial of an innovative in-situ foam extinguishment,mixing foam into infiltration <br /> trenches dug another 10-20 feet into the underlying burning material,to allow the foam to <br /> penetrate and extinguish underlying burning waste; and(3) ongoing air and temperature <br /> monitoring; and <br /> WHEREAS, WMH is willing to pay the $101,500 SEP amount, and the Department of <br /> Environmental Management has funding available for the additional minimum of$82,900 to <br /> comprise the $184,400 which EPA requires to be spent on the SEP; and <br /> WHEREAS,the County is ultimately responsible for environmentally responsible <br /> management and closure of the Closed Kailua-Kona Landfill, in compliance with EPA <br /> requirements, and this CAFO and SEP provides the County with a great EPA-approved <br /> opportunity to try an innovative fire-suppression demonstration project at this site, with most of <br /> the financing coming from WMH in lieu of a penalty paid to EPA; and <br /> WHEREAS,the Department of Environmental Management views the SEP as a cost- <br /> effective and beneficial alternative to litigating the violation issues, or installing a GCCS, and is <br /> willing to take responsibility for implementing the SEP and fulfilling SEP completion and <br /> certification terms of the CAFO, and paying any additional fines that may arise from failure to <br /> comply with said terms,all as set forth in the proposed Settlement and SEP funding Agreement <br /> ("Funding Agreement") attached as Attachment`B"; and <br /> WHEREAS,the CAFO is an agreement with the federal government which settles a <br /> claim against the County in excess of$1,500 and requires Council approval pursuant to Hawaii <br /> Revised Statutes Section 46-7, as an agreement for the County to take action, furnish, and <br /> expend funds or other assistance in undertaking the SEP, and may possibly require payment of <br /> funds of more than one fiscal year, if the County fails to timely complete and certify the SEP in <br /> compliance with the CAFO; and <br /> WHEREAS,the Funding Agreement requires Council approval for the receipt of funds <br /> from WMH pursuant to Hawaii County Charter section 13-12, and may possibly require the <br /> payment of funds from more than one fiscal year, if the County fails to timely complete and <br /> certify the SEP in compliance with the CAFO; <br /> 2 <br />